Ginners in Pakistan say research institutes and agricultural scientists have failed to evolve new varieties of cotton in the last two decades. And taking advantage of this situation, the seed mafia has strengthened itself and supplied substandard, less germinated, unapproved, spurious and uncertified seeds to farmers at exorbitant prices. They also say, sugar mills are being set up in the core cotton zone and this will have detrimental effects on cotton and ginning industries in the region. Construction of new sugar mills, they say, will destroy the economic balance of the cotton belt and, consequently, the land will become barren due to salinity and water logging.
Ginners have demanded a bailout package immediately, soft term loans and interest free-loans, which would be repaid in five years. Their main complaint is that they have to wait endlessly for export refunds. They want export incentives.
In contrast Indian exporters enjoy some incentives. They are entitled to three to five per cent additional rebate, if they export their products to focus market. Pakistan, incidentally is among the focus market for Indian ginners. The Pakistani textile industry wants similar support and access to cheap power and cheap labor. Pakistan was granted GSP Plus status by the EU in January 2014.
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